Estimating Malaysia's output gap: Have we closed the gap?
The concepts of potential output and output gap are central to the policymakers’ analytical work in providing guidance to policy decisions. This paper presents three different estimation approaches for the Malaysian economy, namely, the univariate, multivariate and structural models. While the multi...
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| Format: | Article |
| Language: | English |
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World Scientific Publishing Company
2017
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| Online Access: | http://eprints.sunway.edu.my/788/ http://eprints.sunway.edu.my/788/1/Nur%20Ain%20Estimating%20Malalysia%27s%20output.pdf |
| _version_ | 1848801895471120384 |
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| author | Nur Ain Shahrier, * Chuah, Lay Lian |
| author_facet | Nur Ain Shahrier, * Chuah, Lay Lian |
| author_sort | Nur Ain Shahrier, * |
| building | SU Institutional Repository |
| collection | Online Access |
| description | The concepts of potential output and output gap are central to the policymakers’ analytical work in providing guidance to policy decisions. This paper presents three different estimation approaches for the Malaysian economy, namely, the univariate, multivariate and structural models. While the multivariate and structural models are mainly underpinned by theory and captured the concept of
potential output better, most policymakers still maintain a suite of models to preserve diversity. Diversity provides a greater scope for cross-checking the robustness of results. The paper attempts to contribute by first, providing a critical assessment of the different models in estimating potential output and the output gap, and, second, the usefulness of each models in terms of assessing the
drivers of future potential output, predicting price trends and identifying sources of inflation in the economy. |
| first_indexed | 2025-11-14T21:14:43Z |
| format | Article |
| id | sunway-788 |
| institution | Sunway University |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T21:14:43Z |
| publishDate | 2017 |
| publisher | World Scientific Publishing Company |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | sunway-7882019-06-03T05:14:12Z http://eprints.sunway.edu.my/788/ Estimating Malaysia's output gap: Have we closed the gap? Nur Ain Shahrier, * Chuah, Lay Lian HC Economic History and Conditions The concepts of potential output and output gap are central to the policymakers’ analytical work in providing guidance to policy decisions. This paper presents three different estimation approaches for the Malaysian economy, namely, the univariate, multivariate and structural models. While the multivariate and structural models are mainly underpinned by theory and captured the concept of potential output better, most policymakers still maintain a suite of models to preserve diversity. Diversity provides a greater scope for cross-checking the robustness of results. The paper attempts to contribute by first, providing a critical assessment of the different models in estimating potential output and the output gap, and, second, the usefulness of each models in terms of assessing the drivers of future potential output, predicting price trends and identifying sources of inflation in the economy. World Scientific Publishing Company 2017 Article PeerReviewed text en cc_by_nc_4 http://eprints.sunway.edu.my/788/1/Nur%20Ain%20Estimating%20Malalysia%27s%20output.pdf Nur Ain Shahrier, * and Chuah, Lay Lian (2017) Estimating Malaysia's output gap: Have we closed the gap? Singapore Economic Review. pp. 1-28. ISSN 0217-5908 10.1142/S0217590817500217 |
| spellingShingle | HC Economic History and Conditions Nur Ain Shahrier, * Chuah, Lay Lian Estimating Malaysia's output gap: Have we closed the gap? |
| title | Estimating Malaysia's output gap: Have we closed the gap? |
| title_full | Estimating Malaysia's output gap: Have we closed the gap? |
| title_fullStr | Estimating Malaysia's output gap: Have we closed the gap? |
| title_full_unstemmed | Estimating Malaysia's output gap: Have we closed the gap? |
| title_short | Estimating Malaysia's output gap: Have we closed the gap? |
| title_sort | estimating malaysia's output gap: have we closed the gap? |
| topic | HC Economic History and Conditions |
| url | http://eprints.sunway.edu.my/788/ http://eprints.sunway.edu.my/788/ http://eprints.sunway.edu.my/788/1/Nur%20Ain%20Estimating%20Malalysia%27s%20output.pdf |